Maple Ridge Downtown Development

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Maple Ridge DowntownDevelopment

• By Mr. T.C. Chak
• Mr. C.K. Siu
• of Housing Department

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Contents

• The District of Maple Ridge
• Background
• The Project and Core Facilities
• Funding Arrangement
• History of the Project
• Negotiation Team Work Plan
• Benefits of the Revised Agreement
• Lessons Learned

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The District of Maple Ridge

• Location 45 km east of City of Vancouver
• Area 260 sq. km
• Population
• 73,000 with an average population growth rate of
  2.9

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Background

• 1985 1996 Arts Cultural Plans and 1991 Parks
  Recreation Master Plan identify need for
  facilities to meet the demand of growing
  population
• 1996 GVRD Livable Region Strategic Plan
  identifies the area as one of eight regional town
  centres
• 1996 OCP identifies redevelopment of the downtown
  as a priority

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Before Redevelopment
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After Redevelopment
Art Centre Theatre
Youth Centre
Office Tower
Library
Leisure Centre
Memorial Peace Park
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The Project and Core Facilities

• Redeveloped Memorial Peace Park
• Maple Ridge Public Library (38,000 sq. ft.)
• Office Tower (100,000 sq. ft.)
• Surface Underground Parking

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The Project and Core Facilities

• Expanded and renovated Leisure Centre (70,301 sq.
  ft.)
• Greg Moore Youth Centre (13,000 sq. ft.)
• Arts Centre and Theatre (43,000 sq. ft.)

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Funding Arrangement

• Total capital cost 50M, set at fixed price
• Developer design and construction of the
  project
• District 25-year fixed rate and fixed term
  financing through MFA. Payments are made in fixed
  amount and in two annual instalments.

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History of the Project

• March 1997 to summer of 1999 exploration and
  discussion about
• components of the project
• partners involved
• financial model
• Summer 1999 - partnering development agreements
  signed between the District and the Developer

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History of the Project

• Financial model developed
• Missing Element(s)
• Overall process, but particularly, public
  approval

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History of the Project

• October 1999 - citizen challenged the partnering
  and development agreements.
• Liability gt 5years entered into without public
  approval.
• June 2000 - Supreme Court directed that the
  obligations be collapsed into a term not to
  exceed 5 years
• June to August 2000 - further development
  agreements, purchase and sale agreements, and
  leases signed

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History of the Project

• Supreme Court decision was appealed.
• July 2002 - Court of Appeal overturned original
  decision and found the agreements unlawful and
  ruled the District exceeded its authority by
  borrowing without the assent of the electors.
• Court of Appeal provides two options
• renegotiate seek public approval for
• liabilities gt 5 years
• seek public approval of original deal

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History of the Project

• District chose to renegotiate
• Fall 2002 Council commissioned a review - the
  KROLL report

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Negotiation Team Work Plan

• Negotiate with the Developer
• Co-ordinate the approval processes
• Public Approval
• Ministry approval of
• corporate structure
• structure of financing
• borrowing by-law
• MFA GVRD approval of
• terms of the borrowing

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Benefits of the Revised Agreement

• Better than the original deal
• Capacity to pay
• Control through ownership
• Cost certainty
• Preferred alternative

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1. Better than the Original Deal
The Original Deal
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1. Better than the Original Deal
An Approximation of the Renegotiated Deal
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1. Better than the Original Deal

• Original Deal
• Arts Centre
• Leisure Centre Improvements
• Library
• Park Improvements
• Portion of Tower
• Portion of Parking
• Youth Centre
• Total Stream of Payments
• 80.2million

• Renegotiated Deal
• Arts Centre
• Leisure Centre Improvements
• Library
• Park Improvements
• Entire Office Tower
• Entire Parking
• Youth Centre
• Total Stream of Payments
• 60.6million
• includes entire office space parking 10
  million

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2. Capacity to Pay

• funds required are budgeted in the current
  financial plan

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3. Control through Ownership

• ability to dispose of, add to, stratify, or
  renovate the facilities becomes the choice of the
  District of Maple Ridge

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4. Cost Certainty

• eliminates all uncertainty such as CPI
  adjustments and balloon payment

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5. Preferred Alternative

• The public approved deal mitigated the risk of
  further court proceedings

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Lessons Learned

• Assemble a team of knowledgeable individuals to
  evaluate and implement the project
• Develop a preliminary business plan
• Define project, benefits costs
• Should answer the questions Why a P3?
• Develop a detailed business plan
• Consultation Communication plans
• Selecting a preferred partner
• Negotiating Agreements
• Seeking approval from relevant parties/authorities
  
• Construction/Project Management

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Thank You